Earnings: WPP Digital Revenue Up 10 Percent, Bolstered By Social Media

Ad agency group WPP (LON:WPP) said digital and direct advertising have now grown to make up 23 percent of total revenue, as it reported a 2.4 percent rise in pre-tax profits and a 5.3 percent rise in revenues for the first half of 2007. Revenues from digital and direct networks (that is, from OgilvyOne, Wunderman, rmg:connect, G2, GroupM, Milward Brown, RI and Lightspeed) rose 10 percent on the same period last year, to $997 million, according to slides. CEO Martin Sorrell had this spring stated his intention to ensure digital accounts for 25 percent of revenue by 2010, as WPP snapped up web ads network 24/7 RealMedia for $649 million and invested in video-sharing site VideoEgg.

In the release, WPP also said its revenue from public relations activities was up 14.8 percent at constant currency rates, “reflecting the positive impact on the sector